ED arrests founder of Armstrong Exchange in APX online betting fraud case
The ED has arrested the founder of Armstrong Exchange Pvt Ltd in its All Panel Exchange (APX) betting and cyber-fraud probe, alleging money moved through mule accounts and co-operative society accounts.
Key points
- The ED's Mumbai office arrested the founder of Armstrong Exchange Pvt Ltd on 27 October 2026 under the PMLA in the APX online betting case.
- The ED alleges hundreds of crores were routed through a Bengaluru credit co-operative society's account; about Rs 9 crore was frozen earlier.
- A Mumbai PMLA court gave the ED three days' custody; the accused are presumed innocent until proven guilty in court.
The Enforcement Directorate (ED) said on 31 October 2026 that its Mumbai Zonal Office II arrested the founder of Armstrong Exchange Pvt Ltd on 27 October 2026 under the Prevention of Money Laundering Act (PMLA), 2002, in its probe into an online gaming and betting operation run through All Panel Exchange (APX) and related cyber fraud. The Special Court (PMLA), Mumbai, remanded him to ED custody for three days.
What Happened
The ED's case is based on three FIRs on online gaming, betting and cyber fraud, in which the complainants say they lost crores of rupees.
According to the ED, money was routed through several mule accounts, which are accounts used to move other people's money, at the Jubilee Hills Mercantile Cooperative Bank in Hyderabad and then sent to shell entities. The ED alleges that large sums from these entities went into the nodal account of the Nagarbhavi Credit Cooperative Society, Bengaluru, maintained on behalf of Armstrong Exchange Pvt Ltd, which the arrested person set up.
The ED has alleged that he used the society's KYC and fabricated documents to open a crypto account and routed hundreds of crores through the society's bank account. The agency alleges that a large part of this was directly linked to proceeds of crime from illegal gaming and betting platforms that drew in victims through cyber scams.
Earlier in the case, the ED searched places in Pune, Mumbai, Bengaluru, Hyderabad, Surat and Mehsana, seized documents, froze about Rs 9 crore in several bank accounts, and arrested the chief executive of Edsom Fintech Pvt Ltd, the agency said.
What It Means
The ED's account shows how money from betting apps and cyber scams can move through co-operative bank and credit society accounts. Anyone who has lost money to an online betting or gaming platform, or to a cyber scam, can report it at https://cybercrime.gov.in or on helpline 1930. The ED said further investigation is in progress.
These are allegations, not findings of guilt; the accused are presumed innocent until proven guilty in court, and due process continues.
This report describes enforcement actions and allegations on the public record, attributed to the officials cited. An order, FIR or chargesheet is not a conviction; parties are presumed innocent until proven guilty.
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Sources & Citations
- Enforcement Directorate press release — Enforcement Directorate